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TMI Blog2022 (4) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... cation does not apply to assessment u/s 144-C of the Act. In fact press release clarifies Extension of Timelines- .. provided through notification nos.74/2021 and 75/2021 dated 25.06.2021 .. . None of the notifications referred in the press release pertains to any timeline prescribed u/s 144-C of the said Act. In the circumstances, we will have to agree with petitioner s case that the assessment order dated 27.09.2021 has been passed beyond prescribed time limit. WP Allowed. - WRIT PETITION NO.2437/2021 - - - Dated:- 21-4-2022 - K.R. SHRIRAM N.R.BORKAR, JJ. Mr. J. D. Mistri, Senior Advocate a/w Advocate Paras Savla and Advocate Pratik Poddar for petitioner. Mr. Suresh Kumar, Advocate for Respondents. ORAL JUDGMENT (PER K.R. SHRIRAM, J.) : 1. Petitioner is a Company and tax resident of the Netherland. Petitioner is impugning in this petition an order dated 27.09.2021 passed under Section 143(3) r/w Section 144-C(3) of the Income Tax Act, 1961 (hereinafter to be referred to as the said Act ) and consequent penalty notice on the ground that assessment order was passed beyond the period of limitation provided u/s 144-C of the said Act. 2. Petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted by respondent no.1. 6. Therefore, it is petitioner s case that as per provisions of sub-section 4 of Section 144-C of said Act, respondent no.1 ought to have passed final assessment order u/s 143(3) r/w Section 144-C(3) of the said Act, within one month, from the end of the month in which acceptance of variations is received or period to file objections expires which, in the present case was 30.06.2021. According to the petitioner since the order impugned in this petition has been passed only on 27.9.2021, order is non-est, bad in law and requires to be quashed and set aside since it is passed beyond the period of limitation prescribed. 7. It is respondent s case that order passed is within limitation because; a) e-mail dated 17.5.2021 was not communicated through e-proceeding functionality on ITBA system b) Pursuant to Circular no.8/2021 dated 30.4.2021, time limit to file objections by the tax payer to DRP u/s 144-C of the said Act was extended to be filed within time provided under that Section or by 31.5.2021 whichever is later. c) As per notification no.74/S.O.2580(e) dated 25.6.2021 time limit for completion for assessment which were getting time ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain compliances by the Taxpayers under the Income-tax Act 1961 1. In view of severe pandemic, the Central Board of Direct Taxes, in exercise of its powers under Section 119 of the Income-tax Act, 1961, provides following relaxation in respect of Income-tax compliances by the taxpayers: a) Appeal to Commissioner (Appeals) under Chapter XX of the Income-tax Act, 1961 for which the last date of filing under that Section is 1 st April 2021 or thereafter, may be filed within the time provided under that Section or by 31 st May 2021, whichever is later; b) Objections to Dispute Resolution Panel (DRP) under Section 144C of the Income-tax Act,1961, for which the last date of filing under that Section is 1st April 2021 or thereafter, may be filed within the time provided under that Section or by 31 st May 2021, whichever is later; c) Income-tax return in response to notice under Section 148 of the Income-tax Act, 1961, for which the last date of filing of return of income under the said notice is 1 th April 2021 or thereafter, may be filed within the time allowed under that notice or by 31st May 2021, whichever is later; d) Filing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act) and,- (i) the completion of any action, referred to in clause (a) of sub-section (1) of section 3 of the said Act, relates to passing of any order ,- (a) for assessment or reassessment under the Income-tax Act, and the time limit for completion of such action under section 153 or section 153B thereof, expires on the 30thday of June, 2021 due to its extension by the said notifications, such time limit shall further stand extended to the 30th day of September, 2021; (b) for imposition of penalty under Chapter XXI of the Income-tax Act,- (i) the 29th day of September, 2021 shall be the end date of the period during which the time limit specified in, or prescribed or notified under, the Income-tax Act falls for the completion of such action; and (ii) the 30th day of September, 2021 shall be the end date to which the time limit for completion of such action shall stand extended; (ii) the compliance of any action, referred to in clause (b) of sub-section (1) of section 3 of the said Act, relates to intimation of Aadhaar number to the prescribed authority under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r family. In order to provide relief to the family members of such taxpayer, it has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years. The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to ₹ 10 lakh in aggregate for the amount received from any other persons. Necessary legislative amendments for the above decisions shall be proposed in due course of time. B. Extension of Timelines In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices. In order to ease compliances to be made by taxpayers during this difficult time, reliefs are being provided through Notifications nos. 74/2021 75/2021 dated 25th June, 2021 Circular no. 12/2021 dated 25th June, 2021. These reliefs are: 1) Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37 BB of the Rules, may be furnished on or before 31 st July, 2021. 9) The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21, which is required to be filed on or before 30 th June, 2021, may be furnished on or before 31 st July, 2021. 10 ) The Annual Statement required to be furnished under sub-section (5) of section 9A of the Act by the eligible investment fund in Form No. 3CEK for the Financial Year 2020-21, which is required to be filed on or before 29 th June, 2021, may be furnished on or before 31 st July, 2021. 11) Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which is required to be uploaded on or before 15th July, 2021, may be uploaded by 31st August,2021. 12) Exercising of option to withdraw pending application (filed before the erstwhile Income Tax Settlement Commission) under sub-section (1) of Section 245M of the Act in Form No. 34BB, which is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent no.1 on 17.5.2021 and therefore, time limit under sub-section 4 of Section 144-C of the said Act would expire on 30.06.2021. Even if we accept respondent no.1 s grievance that e-mail dated 17.5.2021 was not uploaded in ITBA system and if at all we say that the email has to be ignored, still, draft order having been received by petitioner on 19.4.2021, thirty day period provided under sub-section 2 of Section 144-C of the said Act would have expired on 18.05.2021 which would mean time limit under Sub-section 4 of the said Act would still expire on 30.6.2021. Admittedly, in this case, order has been passed on 27.09.2021. 12. Let us consider whether we could accept respondent s contention that order was within time. Mr. Suresh Kumar submitted under the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 r/w notification received and relied in the affidavit-of-reply, time has been extended. Mr. Suresh Kumar submitted that notification under Relaxation Act issued by the Government of India for mitigating pains of the tax payers due to general lockdown and restrictions due to COVID pandemic. Same yard-stick apply to the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ready issued under Relaxation Act which are referred to in the said notification. Circular no.8/2021 has not been modified because it is not referred to in the said notification. Moreover, Clause A(i) of the said Notification only provides for assessment or re-assessment under the said Act and the time limitation for completion of such action u/s 153 or 153-B thereof expires on 30.06.2021, due to its extension by the said notifications, such time limit shall further stand extended to 30.9.2021. First of all, it does not refer to Section 144-C of the said Act. Sub-section 4 of Section 144-C of the said Act also says that the Assessing Officer shall, notwithstanding anything contained in Section 153 or 153-B shall pass assessment order under subsection (3) within time prescribed therein. Thirdly, it also says due to which extension by said notifications ... and the said notifications are defined in the said notification itself and none of those notifications apply to the provisions of Section 144-C of the said Act. We would add, it is not even the case of respondent that, any of these notifications will apply to Section 144-C(4) of the said Act. If that was the case, we would ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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